Germany needs to focus support for EV rollout on low-income households – report
Clean Energy Wire / taz
The switch to electric vehicles is not yet possible for all income groups equally in Germany, according to a report by clean mobility NGO International Council on Clean Transportation (ICCT). “Socially oriented policy measures can help to address inequalities and enable more people to switch to an electric car,” the ICCT said.
Examples for suitable policies include incentives for the purchase of new and used electric cars that are tailored to specific target groups and take into account factors such as income, mobility restrictions or size of residence, as well as alternative financing models for people with limited financial resources, according to the NGO. The use of electric cars in Germany remains largely restricted to “early adopters with a typically higher socio-economic status,” the ICCT lamented.
A successful transition to electric cars is crucial to achieving Germany’s climate targets, said the ICCT’s lead author, Sandra Wappelhorst. “It is crucial that everyone who relies on a car for their everyday mobility can participate in the transition from combustion to electric cars - regardless of factors such as income or place of residence,” she added.
The ICCT called on the German government to follow the example of other countries that have implemented support schemes that pay more attention to social aspects. “In France, for example, commuters with below-average incomes benefited from reduced leasing rates for electric cars at the beginning of the year,” the NGO said, adding that the strong demand for the funding scheme showed that it was the right approach.
Wappelhorst told newspaper taz that the French policy was also part of an industrial policy strategy, as the subsidy only applied to e-cars produced in Europe. A similar model in Germany could therefore also be an opportunity for the country’s struggling automotive industry, she said.
Germany’s charging infrastructure also remains inadequate for drivers who do not have the option of charging their car at home, again to the disadvantage of lower income groups, according to the ICCT.
Falling electric vehicle sales have led to a crisis in the German car industry and major companies and suppliers have announced job cuts. The German government aims to have 15 million electric passenger cars on the country’s roads by 2030 and wants one million charging points by that date.